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  • FIRST POST
    • uclown2002
    • By uclown2002 25th Jun 18, 8:47 PM
    • 54Posts
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    uclown2002
    Cashing in FSAVC at 55
    • #1
    • 25th Jun 18, 8:47 PM
    Cashing in FSAVC at 55 25th Jun 18 at 8:47 PM
    I have a frozen/dormant FSAVC with a transfer value of about 26K, which appears that I can cash in on my 55th birthday in a few weeks time.

    I am still employed and contributing to a civil service final salary(DB?) scheme and am not looking to retire for another 5 years.

    Given my employment can I still cash the AVC in or do I need to retire first? I assume the former but would like confirmation.

    I understand only 25% will be tax free and the remainder will be taxed at my usual 40% rate. If I provide the pension provider with a current tax code will the appropriate tax be deducted before payment or do they tax at basic rate tax?
    Last edited by uclown2002; 25-06-2018 at 10:01 PM.
Page 2
    • uclown2002
    • By uclown2002 7th Jul 18, 12:48 PM
    • 54 Posts
    • 8 Thanks
    uclown2002
    [QUOTE=hyubh;74499937]This is not quite correct - you stop adding 'reckonable service', however the 'final salary' used to calculate your Classic pension on retirement will still be with reference your pay at that point (not when you move into Alpha).

    Yes I'm fully aware of that
    • uclown2002
    • By uclown2002 7th Jul 18, 12:53 PM
    • 54 Posts
    • 8 Thanks
    uclown2002
    However, the Alpha accrual rate is way better than Classic's in the first place, so to an extent this is horses for courses and you may well end up with a similar pension to if you were in Classic to the end.
    Originally posted by hyubh
    Yes, that is why I'm inclined to go well before NPA. Do you think adding to Alpha I sound compared to PPP?
    • Joey Soap
    • By Joey Soap 7th Jul 18, 1:27 PM
    • 192 Posts
    • 69 Thanks
    Joey Soap
    Yes, that is why I'm inclined to go well before NPA. Do you think adding to Alpha I sound compared to PPP?
    Originally posted by uclown2002
    I believe alpha trounces any private pension option hands down, especially over a fairly short timescale as you indicate.
    • AnotherJoe
    • By AnotherJoe 8th Jul 18, 12:25 PM
    • 11,489 Posts
    • 13,275 Thanks
    AnotherJoe
    So what about take the 25% tax free and transfer rest into a SIPP (as suggested above) I could just about get rid of these cards once and for all, free up the 200 per month to invest?
    Originally posted by uclown2002
    NOW you're talking !
    Except as said you'll have to xfer into a SIPP and then take out the 25%, in that order.
    • uclown2002
    • By uclown2002 8th Jul 18, 12:53 PM
    • 54 Posts
    • 8 Thanks
    uclown2002
    NOW you're talking !
    Except as said you'll have to xfer into a SIPP and then take out the 25%, in that order.
    Originally posted by AnotherJoe
    Yup the wheels are in motion thanks to input on this thread.

    Just weighing up where to put a few hundred s pm extra although Civil Service Alpha scheme is favourite when I switch to it in April 2019.
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